Yield Farming coins: are they halal?

What is Yield Farming?

Yield Farming coins are tokens or protocols specifically built around maximizing returns by moving capital across lending markets, liquidity pools, and staking mechanisms.

How CryptoUmmah screens Yield Farming coins

Riba is explicitly the dominant and most direct concern for this category, since the majority of yield farming strategies route capital through interest-bearing lending markets at some point in the chain, even when wrapped in additional layers of automation. Our revenue model, interest assessment, and rewards-distribution criteria weigh most heavily here. Where a yield farming protocol routes capital exclusively through fee-based liquidity provision or staking rather than lending, it can score meaningfully better — but that has to be verified mechanism-by-mechanism rather than assumed from the category label. Across the 52 Yield Farming coins we've screened, the average Shariah compliance score sits at 50.6/100, with 13% classified Halal, 29% Mashbooh, and 58% Haram.